SKP Resources' 3Q net profit doubles

by **Cals** Mon 22 Feb 2016, 02:40

SKP Resources' 3Q net profit doubles

By Danial Idraki / theedgemarkets.com | February 19, 2016 : 6:09 PM MYT

KUALA LUMPUR (Feb 19): SKP Resources Bhd's net profit for the third quarter ended Dec 31, 2015 (3QFY16) more than doubled to RM24.15 million, or 2.20 sen a share, from RM10.54 million, or 1.17 sen a share, a year ago, due to higher revenue recorded from existing customers as well as contribution from newly acquired subsidiaries.

In a filing with Bursa Malaysia today, revenue also more than doubled to RM314.77 million for the period, compared to RM150.18 million in 3QFY15.

For the nine-month period (9MFY16), net profit stood at RM60.47 million or 5.58 sen a share, against RM30.71 million or 3.41 sen a share a year ago.

Revenue, meanwhile, came in at RM819.06 million from RM422.16 million in 9MFY15.

Moving forward, the group expects to remain profitable as strong order books from existing customers will contribute positively to its performance for FY16.

"The acquisition of new subsidiaries would allow the group to leverage on their additional production capacity and broaden the product mix to better tailor its services to suit the demand of customers," SKP Resources said.

The plastic moulding manufacturer added that it would diversify its customer base with the acquisitions as the new subsidiaries have established long-term relationships with several multinational companies as its customers, which are spread over a diverse range of industries.

Shares of SKP Resources closed unchanged at RM1.32 with 2.4 million shares traded, giving it a value of RM1.48 billion.